iii Porters Five Forces analysis of Samsung Electronics The five forces are

Iii porters five forces analysis of samsung

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iii). Porter’s Five Forces analysis of Samsung Electronics The five forces are used to analyze the competitiveness of an industry and market with the aim of determining their attractiveness. a). Level of rivalry in the Industry The degree of rivalry in this industry is intense among the first four main competitors. Samsung Electronics has to compete in all areas of its market that include production of smartphones through its flagship Galaxy brand (Pratap, 2017). The industry is approaching market saturation for most of the products’ categories and this causes intense rivalry and competitiveness in meeting consumer needs and preferences. b). Buyers’ Power The bargaining power of customers in the case of Samsung is moderate to high based on the market segment where the company has products. The buyers’ power is moderate to medium
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A CASE STUDY OF SAMSUNG ELECTRONICS 4 because of relatively low cost of switching to competing brands in the market (Pratap, 2017). Further, intense competition, the use of technology and changing customer trends are some of the reasons for the rising influence of customers in the electronics industry and marketplace. c). Suppliers’ Power The bargaining ability of suppliers in the electronics industry in the case of Samsung Electronics with over 2,700 suppliers is low to moderate (Samsung, 2019). The main supplier of Samsung Electronics with a significant power is Google LLC as it’s the only company that supplies the Android operating system used in the production of smartphones by Samsung. d). Threat of New competitors in the marketplace The threat of new players in the industry is low to moderate. New players need to invest more in marketing and developing their brands to access the market share and become competitive (Evans, 2015). The level of competition in the industry and the ever need for innovative products makes it difficult for new players to navigate the industry and find a footing; especially in emerging markets. Again, the increased legal and regulatory pressure with the aim of increasing consumer protection add to the more entry barriers in the industry. e). Threat from Substitutes Substitutes in the white goods industry and marketplace are many because of different producers that produce for the different consumer preferences. The threat of substitutes in the electronics industry is moderate to high because different producers continue to provide innovative products to consumers. iv). How Samsung is using Open Innovation to address Five Forces Influence on its Competitiveness
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A CASE STUDY OF SAMSUNG ELECTRONICS 5 Known for embracing closed innovation as espoused by its founder, Samsung Electronics has changed over time to embrace an open approach to innovation where through its use of research and development approaches is not confined to ideas that it generates internally. The firm’s innovation of semiconductor with its different strategies like rapid, aggressive and huge investment as well as mass production system, and attainment of technology-driven
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  • Fall '19
  • Corporate social responsibility, Samsung Electronics, Samsung Group

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